The Labor Department reported that the producer price index for final demand increased by a seasonally adjusted 0.2% in October. September was revised lower showing the PPI increasing 0.2% instead of 0.4%, and unchanged from August. On an unadjusted basis the PPI, a measure of prices that U.S. businesses get for the goods and services they produce, is up 8.0% on a year-over-year basis, down from September’s 8.4% reading. The PPI is showing some signs of moderation after peaking at (+11.7%) in March 2022. The index for final demand goods rose (+0.6%), reflecting increases in food (+0.5%) and energy (+2.7%). The index for final demand services declined for the first time since November 2020, it decreased (-0.1%), contributing factors were decreases in trade (-0.5%), and transportation and warehousing costs (-0.2%). Another contributing factor to the decline was a drop in the index for fuels and lubricants retailing (-0.7%). Excluding food, energy, and trade services, the so-called core PPI increased (+0.2%) in October, after advancing a revised (+0.3%) in September. The core PPI is up 5.4% from a year ago, down from 5.6% readings in both September and August.

The Commerce Department reported advance U.S. retail and food services sales were up 1.3% to $694.5B in October, up from a flat reading in September, and a 0.4% increase in August. Retail sales are up 8.3% year over year. Total sales for August 2022 through October 2022 period were up 8.9% year over year. Increases in sales were reported at gas stations (+4.1%), grocery stores (+1.4%), auto dealers (+1.3%), internet retail (+1.2%), furniture (+1.1%), home and garden (+1.1%), and personal care (+0.5%). Restaurants, the only services category increased (+1.6%). Offsetting the increases were decreases in electronics and appliances (-0.3%), sporting goods (-0.3%), and general merchandise (-0.2%). When sales for gas stations and autos are excluded, retail sales increased by 0.9%. Core retail sales, a measurement that excludes spending on autos, gasoline, building materials, and food services increased by 0.7% in October. September’s core retail sales were revised to show sales increasing by 0.6% instead of 0.4%.

The US Energy Information Administration reported US commercial crude oil stockpiles decreased by 5.4M barrels to 435.4M barrels (4% below the five-year average) for the week ending November 11th. Crude oil refinery inputs averaged 16.2M barrels per day, an increase of 63K barrels per day as compared to the previous week’s average. Gasoline inventories increased by 2.2M barrels (5% below the five-year average), and distillate inventories increased by 1.1M barrels (15% below the five-year average). Refineries operated at 92.9% of their operable capacity. Gasoline production increased averaging 9.8M barrels per day. Distillate fuel production decreased averaging 5.1M barrels per day. Crude oil imports came in at 5.8M barrels per day, a decrease of 988K barrels per day as compared to the previous week. Crude oil imports averaged about 6.1M barrels per day over the last four weeks, 1.3% less than the same period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 572K barrels per day, and distillate fuel imports averaged 110K barrels per day. Total commercial petroleum inventories increased by 6.5M barrels.